Elgin budget calls for sales tax hike, alcohol tax

Vote on $268.7 million spending plan is expected Dec. 21

December 02, 2011

Elgin officials decided Wednesday to present a 2012 budget to the public that calls for a sales tax increase and a new tax for alcohol and utilities, but also cuts water rates and restores some proposed cuts to nonprofit groups.

A final vote is expected Dec. 21 following two public hearings.

For the last month, the City Council has mulled various options to fill a $4.5 million deficit and reduce the city's reliance on property taxes.

The $268.7 million budget includes a 1 percent cut to water fees, a sales tax increase from 0.75 to 1.25 to pay for street resurfacing, a 3 percent tax on alcohol sales, a $13.30 refuse fee and a $2 leaf collection fee for those who live in portions of the city where residents rake their leaves to the curb.